Legal Question in Banking Law in India

How to escape from cheque bonuce case?

Cheque bouncing due to stop payment

Respective Sir,

I had given a cheque of 4Lacs (date on cheque: 05-april-2016) to a lady (owner) to buy a house. At the time of writing advance payment agreement, I had told her that rest of amount will be paid through DHFL loan; after hearing this she did not give us advance payment receipt (she replied its ok; but did not give us advance payment receipt. She replied us that you can trust me,' i will give you these documents whenever needed"; unfortunately we trusted her).

Now she is not giving us advance payment receipt and copy of property registration; those are mandatory to apply a loan in DHFL. We're requesting her either give us these documents or return our cheque and one lakh rupee (we had also given one lakh in cash). She is not accepting anything; and threatening us "I'm not going to give you anything and you have to pay rest of 4Lakhs also; otherwise, I will file a cheque dishonour case on you.

Now I stopped the payment of cheque and also sent a notice to the owner (payee) that I have stopped the payment of cheque because you did not give us any proof yet.

At this condition, we�re totally confused that what should we do?

Now my questions are;

1. can the owner file a cheque dishonour case on me under section 138; even though I have sent the notice?

2. If yes then what should I do now to protect myself from this case?

3. Am I liable to pay the amount; even though they're responsible for everything?

1 Answer from Attorneys

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